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Human Resource Management Session STRATEGIC HUMAN RESOURCE MANAGEMENT: AN OVERVIEW HR Branding • Firm’s corporate image or culture • Embodies values and standards that guide peoples’ behavior • People know what the firm stands for, the people it hires, fit between jobs and people, and results it recognizes and rewards • Important in getting highest quality applicants to join firm Human Resource Management – Functions (4) Safety and Health Hu De man ve lop R e s me our nt ce ensa tion and oyee ns mpl io (5) E r Relat o Lab Human Resource Management (2 ) (3) C omp (1) ing f f Sta (1) Staffing Staffing - Process through which organization ensures it always has proper number of employees with appropriate skills in right jobs at right time to achieve organizational objectives • Job Analysis • Human Resource Planning • Recruitment • Selection Staffing (Cont.) • Job analysis - Systematic process of determining skills, duties, and knowledge required for performing jobs in organization • Human resource planning - Systematic process of matching the internal and external supply of people with job openings anticipated in the organization over a specified period of time Staffing (Cont.) • Recruitment - Process of attracting individuals on a timely basis, in sufficient numbers, and with appropriate qualifications, to apply for jobs with an organization • Selection - Process of choosing from a group of applicants the individual best suited for a particular position and the organization (2) Human Resource Development • Training • Development • Career Planning • Career Development • Organizational Development • Performance Management • Performance Appraisal Human Resource Development (Cont.) • Training - Designed to provide learners with knowledge and skills needed for their present jobs • Development - Involves learning that goes beyond today's job; it has more long-term focus • Career planning - Ongoing process whereby individual sets career goals and identifies means to achieve them • Career development - Formal approach used by organization to ensure that people with proper qualifications and experiences are available when needed Human Resource Development (Cont.) • Organization development - Planned process of improving organization by developing its structures, systems, and processes to improve effectiveness and achieving desired goals • Performance management - Goal-oriented process directed toward ensuring organizational processes are in place to maximize productivity of employees, teams, and ultimately, the organization • Performance appraisal - Formal system of review and evaluation of individual or team task performance (3) Compensation Compensation and Benefits: Pay Benefits Non-financial Rewards 10 HR’s Changing Role: Questions That Are Being Asked • Can some HR tasks be performed more efficiently by line managers or outside vendors? • Can some HR tasks be centralized or eliminated altogether? • Can technology perform tasks that were previously done by HR personnel? • Many HR departments continue to get smaller 17 HR Outsourcing • Transfers responsibility to an external provider • Market for HR outsourcing is growing dramatically 18 Ways HR Outsourcing is Done • Discrete services • Multi-process services • Total HR outsourcing 19 Multi-process Services • Complete outsourcing of one or more human resource processes • Example: Procter & Gamble outsourced entire training operations 20 HR Shared Service Centers (SSCS) Takes routine, transaction-based activities that are dispersed and consolidates them in one location 21 Professional Employer Organization (PEO - Employee Leasing) Company that leases employees to other businesses 22 Line Managers Performing HR Tasks • Involved with human resources by nature of their jobs • Line managers are now performing some duties typically done by HR 23 HR as a Strategic Partner • HR executives must understand complex organizational design • Sharp deviation from what has traditionally been an administrative type role for HR 24 Human Capital Metrics Measures of HR performance 25 Examples of HR Metrics • • • • • • Time to fill open positions HR headcount ratios Administrative cost per employee Turnover cost Training return on investment Cost per employee for HR administration ranges from $1,200 - $1,600 26 HR Scorecard • Report card of effectiveness of specific person • Metrics that will best suit each company depends on variety of factors 27 Human Resource Executives Vice President, Human Resources Manager, Compensation Benefits Analyst Vice President, Industrial Relations Manager, Training and Development Manager, Staffing Executive: Generalist: Specialist: 28 Traditional Human Resource Functions in a Large Firm President and CEO Vice President, Marketing Manager, Training and Development Vice President, Operations Manager, Compensation Vice President, Finance Manager, Staffing Manager, Safety and Health Vice President, Human Resources Manager, Labour Relations 29 The Evolving HR Organization HR Outsourcing HR Shared Service Centers Professional Employer Organization Line Manager Evolve to make HR more strategic 30 A Possible Evolving HR Organization Example President and CEO Vice President, Operations Vice President, Strategic Human Resources Training & Development (Outsourced) Vice President, Finance Compensation (Shared Service Centers) Vice President, Marketing Staffing (Line Managers, Use of Applicant Tracking Systems) Director of Safety and Health 31 ... organization • Selection - Process of choosing from a group of applicants the individual best suited for a particular position and the organization (2) Human Resource Development • Training • Development... altogether? • Can technology perform tasks that were previously done by HR personnel? • Many HR departments continue to get smaller 17 HR Outsourcing • Transfers responsibility to an external provider... their jobs • Line managers are now performing some duties typically done by HR 23 HR as a Strategic Partner • HR executives must understand complex organizational design • Sharp deviation from what